Correlation Between Samsung Electronics and Yangzijiang Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Yangzijiang Shipbuilding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsung Electronics and Yangzijiang Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Yangzijiang Shipbuilding, you can compare the effects of market volatilities on Samsung Electronics and Yangzijiang Shipbuilding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samsung Electronics with a short position of Yangzijiang Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Yangzijiang Shipbuilding.
Diversification Opportunities for Samsung Electronics and Yangzijiang Shipbuilding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Yangzijiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Yangzijiang Shipbuilding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangzijiang Shipbuilding and Samsung Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samsung Electronics Co are associated (or correlated) with Yangzijiang Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangzijiang Shipbuilding has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Yangzijiang Shipbuilding go up and down completely randomly.
Pair Corralation between Samsung Electronics and Yangzijiang Shipbuilding
If you would invest (100.00) in Yangzijiang Shipbuilding on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Yangzijiang Shipbuilding or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Yangzijiang Shipbuilding
Performance |
| Timeline |
| Samsung Electronics |
| Yangzijiang Shipbuilding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Samsung Electronics and Yangzijiang Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Yangzijiang Shipbuilding
The main advantage of trading using opposite Samsung Electronics and Yangzijiang Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Yangzijiang Shipbuilding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yangzijiang Shipbuilding will offset losses from the drop in Yangzijiang Shipbuilding's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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